Indo-Pacific Analysis Brief Vol 61
50 years after NARA: The evolution and future of the Australia-Japan energy partnership
February 2026
By Aaron Magunna
Aaron Magunna is an Associate Research Fellow at the Perth USAsia Centre and a PhD candidate at the University of Queensland. He is also a Research Associate at the Second Cold War Observatory and an Associate Fellow at the University of Tokyo’s Economic Security Intelligence Lab. His research focuses primarily on how India and Japan respond to China–US competition by adapting their development financing and economic security policies.
Aaron holds a Bachelor’s degree in American Studies and a Master’s in International Relations from the University of Groningen in the Netherlands and worked in the think tank sector before re-entering academia.
His research has been published in outlets such as Third World Quarterly, the Australian Journal of International Affairs, the Journal of the Indian Ocean Region, the Lowy Institute’s Interpreter, and the Australian National University’s East Asia Forum.
Key Messages
↗ Japanese investments in and demand for Australian fossil fuels have played a key role in the development of the Australian energy and mining sector since the 1960s, most notably in Western Australia (WA).
↗ While the role of liquified natural gas (LNG) has become an increasingly contentious topic in Australia-Japan relations, maintaining a strong LNG relationship with Japan should remain a policy priority for the federal government. Preserving this relationship will be critical to facilitating Japanese investments in future-facing green industries in which Australia enjoys competitive advantages.
↗ Given its highly developed mining sector and access to Asian markets, the WA economy is uniquely placed to benefit from diversifying the economic relationship with Japan towards renewables and green industries.
↗ In an increasingly fragmented geoeconomic landscape, the continued strength of the Australia-Japan relationship will be crucial to enable Australian economic diversification while ensuring long-term Japanese energy security.
Related insights
Indo-Pacific Analysis Briefs
The Indo-Pacific Analysis Briefs deliver concise, timely insights on critical regional developments. Drawing on perspectives from leading analysts in Asia, Australia and the United States, this series examines emerging issues shaping national and Indo-Pacific policy.